SGS Market Timer Status: SHORT
SHORT as of the close of Friday January 7, 2022
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must
IBM, MMM, MSFT, TSLA, BA, LRCX, NOW, MA, AAPL, SWKS, TEAM, and V are to report this week. How the market reacts to earnings reports and forecast by these companies will be very telling as far as if the selling is done or not. Shorter-term, indices are oversold and a short-covering/dip buying rally is very likely early this week.
Besides earnings reports by important companies, there is also FOMC announcement on Wednesday, followed by Powell's news conference. There is a good chance that the Fed tones down its hawkish stand on tapering and interest rate hikes due to what is happening with the Omicron variant.
As of the close of last Friday (1/21), the value of SGS was calculated to be -2002 and the status of SGS remains SHORT. Looking back to value of SGS during previous market corrections since 2009, except for the Covid flash crash of March 2020, SGS levels below -2000 marked the beginning of the bottoming process for indices. In those previous corrections, 2018 Q4 for example, SGS values of -2500 to -3000 marked the bottom for those corrections.
S&P 500 Support And Resistance Levels
Support and resistance levels for SPX for this week are shown above. SPX is now trading below its PUL-2 and that is bearish. Next support levels for SPX are 4350 and 4225. There is a good chance that SPX finds the bottom for current correction around 4225.
SPX: S&P 500 Index SMA: Simple Moving Average
DJI: Dow Jones Industrial Index EMA: Exponential Moving Average
DJT: Dow Jones Transportation Index PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index PUL: Primary Uptrend Line
RUT: Russell 2000 Index ASL: Active Support Line
OEX: S&P 100 Index ARL: Active Resistance Line
NDX: NASDAQ 100 Index DTL: Dynamic Trend Line
TUL: Tentative Uptrend Line TDL: Tentative Downtrend Line
TLR: Trend Line Resistance TLS: Trend Line Support
Disclaimer: The views expressed are provided for informational purposes only and should not be construed in any way as investment advice or recommendation. Furthermore, the opinions expressed may change without notice.